CALIFORNIA is experiencing 1,300 foreclosures every single day," said Paul Leonard, director of the California offi ce of the Center for Responsible Lending, last year. Leonard explained that this is the result of loose lending practices.
Last year, California Assemblyman Ted Lieu introduced his proposal on a bill that was designed to force Wall Street to help the citizens of "California Street." It was actually a moratorium and would require "regular reports" from lenders on loan modifi cations and foreclosure reductions. The proposal has been blocked late September of last year, leaving consumer groups and homeowners dissatisfied.
But now, it seems that there is still hope for homeowners, as one of the most comprehensive and important law in the country has been signed by California Governor Arnold Schwarzenegger, the AB2X-7, also known as the California Foreclosure Prevention Act. The law will now impose a 90-day foreclosure moratorium unless a lender offers a comprehensive loan modifi cation program to keep people in their homes. It will provide an additional amount of time for families to work out new terms with their financial lender or qualify for new mortgage rescue programs.
Many neighborhoods throughout California have their home values plummet nearly 50 percent, and a lot of families are struggling to keep their homes. This new law will open opportunities and hopes for homeowners to save their homes from foreclosure.
( Published on February 28, 2009 in Asian Journal Los Angeles p. A12 )
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